FCC Chairman to Back Merger of XM and Sirius

Authored by Mark Hefflinger on June 16, 2008 - 7:16am.

Washington - Shares of XM Satellite Radio (NASD: XMSR) rose 6% by midday Monday after FCC chairman Kevin Martin said that he will recommend the approval of the company's merger with New York-based Sirius Satellite Radio (NASD: SIRI). The move could clear the way for the companies to complete the multi-billion-dollar deal, which has been in regulatory limbo for more than a year.

The Washington Post reported that Martin decided to back the deal after the companies last week made concessions designed to prevent an increase in subscription prices, promote competition among satellite radio manufacturers and provide current subscribers with interoperable radios capable of receiving programming from both services.

The combined company also would need to devote 8% of its channels for noncommercial and minority-owned stations.

"I am recommending that, with the voluntary commitments they have offered, on balance, this transaction would be in the public interest," Martin said in a statement.

At least two of the other four commissioners must also vote in favor of the merger, which received approval from the Justice Department in March.